Credit cards, debit cards and other financial cards and presentation instruments are widely used by consumers as a convenient way to conduct financial transactions. Such cards and their associated accounts have been made even more convenient with the introduction of wireless devices that store and use account information or identification. Mobile phones, PDAs, key fobs and other devices incorporate features using RFID (Radio Frequency ID) or NFC (Near Field Communications) signaling to permit a cardholder to conduct a transaction by placing the device near an RFID reader, e.g. at a retail POS system at a merchant location.
Unfortunately, presentation instruments built into wireless or other mobile devices have increased the risk of fraudulent transactions. As an example, when a mobile phone employing RFID or NFC features is used by a consumer, the user places the phone near a reader, and after the reader at the POS system identifies the user and initiates a transaction, the user is typically required to enter a PIN (personal identification number) known only to the user and thereby enabling the user to authenticate himself or herself and the transaction. Unfortunately, thieves have devised various means to steal PIN information, such as by surreptitiously watching a person entering a PIN at the phone or a PIN pad. If the mobile phone is then stolen, it may be used with the stolen PIN to conduct transactions.